Are You Depending on Last-Gen Strategies for Next-Gen Customers?
If you think your customers will happily (and blindly) accept any old-school, old-fashioned products and services you offer, you’re wrong! The millennial and Gen Z generation is brutally unforgiving: given how habituated they have become to emerging technology capabilities, they expect the same kind of convenience, sophistication, and modernity in the banking and insurance services they receive.
In the age of the extremely demanding customer, depending on last-gen strategies to service this new breed of next-gen customers is sure to be a downhill ride – not just in terms of revenue, but also in terms of customer satisfaction and loyalty.
The expectations of the next-gen era are constantly whirling
Today’s banking customers have massive expectations of technology and customer service. They have become so demanding of the products and services they receive, that they’re quick to shift loyalties if their needs aren’t met. So, what makes this new breed of banking customers so different?
They want every task to be accomplished immediately and expect products and services that are straightforward. They expect seamless, intuitive, and elegant user experiences, They will not take out the time to figure out a poorly-designed app or website, and will almost immediately shift to an alternative – if they’re unhappy. Here’s what they expect from banks:
- Seamless, consistent, and flawless banking experiences – regardless of the time, location, channel, or device
- Almost instantaneous response (and resolution) to any query they have or issue they face
- Intuitive, easy, and secure access to products or services – especially on their mobile or handheld devices
- Highly tailored and personalized campaigns, products, and services – based on their unique needs, customer journeys, and purchasing behavior
Keeping up with these expectations requires a transformative banking approach
Banks looking to woo these next-gen customers cannot depend on last-gen strategies. If the experiences you offer to them do not live up to their expectations, you’re surely going to miss the bus. Since these millennials are unforgiving in their expectations of technology and customer service, you need to embrace new tools, and strategies, and solutions. Here are some things to keep in mind:
- Move away from traditional advertising tactics: Basic paper ads or generic email marketing will just not work with the next-gen customer. If you want to generate interest, forge relationships, and fuel investment, the advertising tactics you use have to be extremely modern and innovative: from videos to social media marketing, voice-assistants to sponsored product ads, programmatic advertising to influencer marketing – enticing the tech-savvy customer base means relying on the latest in the world of customer communication.
- Strengthen your online game: Gen Z customers have long been expecting unmatched online banking experiences, but the pandemic has caused a sudden and widespread increase in the desire for online fulfillment. Online banking is no longer a good-to-have feature but rather a must-have. If you want to cater to the next-gen, you need to offer online experiences that are interesting, innovative, and intuitive – all at the same time.
- Consider microtargeting: If you want to attract and retain the next-gen customer base, you cannot treat everyone as the same. What you need is to take on a microtargeting strategy and curate campaigns or services that meet the needs of each such micro-target. Whether you’re targeting Gen Y based on their age group, device preferences, income brackets, or social media preference, you need to deliver content in a way that matches individual personalities and preferences.
- Leverage the power of data: The data that you hold on your customers has the power to transform the banking experiences you offer to the next gen. To cater to their growing mobile-first needs, you need to leverage the capabilities of big data analytics to constantly uncover insights from structured and unstructured data generated via human interactions and use it to make intelligent business decisions. The ability to make quick, data-driven decisions can aid you in responding to changing needs and drive far greater operational excellence.
- Automate and accelerate: Another powerful weapon that can be used to keep up with the expectations of your next-gen customers is automation. Leveraging AI, machine learning, and RPA techniques for the automation of human tasks can help solve many of the challenges banks face. From automating back-office tasks to summarizing documents, speeding up the loan approval process to accelerating customer onboarding – RPA holds great promise in automating repetitive tasks, reducing manual effort (and error), and empowering banks with the speed and accuracy they need in keeping up with the evolving needs of their next-gen customers.
Relying on outdated strategies for modern customers isn’t going to take you far. If you want to deliver unmatched banking experiences to customers who are extremely demanding and unforgiving, you need to move away from traditional advertising tactics, strengthen your online game, consider microtargeting, leverage the power of data and automate processes. Embracing these tactics is the only way to stay a step ahead of their needs, reduce response time, and boost next-gen customer satisfaction, loyalty, and lifetime value. Check in with us if you want to know how some of the best banks are looking at refreshing their strategies keeping data at the center.